AICPA-FAR Exam Information and Outline
Financial Accounting and Reporting
AICPA-FAR Exam Syllabus & Study Guide
Before you start practicing with our exam simulator, it is essential to understand the official AICPA-FAR exam objectives. This course outline serves as your roadmap, breaking down exactly which technical domains and skills will be tested. By reviewing the syllabus, you can identify your strengths and focus your study time on the areas where you need the most improvement.
The information below reflects the latest 2026 course contents as defined by AICPA. We provide this detailed breakdown to help you align your preparation with the actual exam format, ensuring there are no surprises on test day. Use this outline as a checklist to track your progress as you move through our practice question banks.
Below are complete topics detail with latest syllabus and course outline, that will help you good knowledge about exam objectives and topics that you have to prepare. These contents are covered in questions and answers pool of exam.
Exam Code: AICPA FAR
Exam Name: AICPA CPA Financial Accounting and Reporting
Total Questions: 50 MCQs
Scoring: 50% from MCQs
otal Duration: 4 hours
Number of Testlets: 5
Area I : (30–40%) Financial Reporting
Area II : (30–40%) II. Select Balance Sheet Accounts
Area III : (25-35%) Select Transactions
Area I : Financial Reporting
- Conceptual Framework and Standard Setting
- Objectives of financial reporting
- Qualitative characteristics of accounting information
- Elements of financial statements
- Recognition and measurement criteria
- Constraints and assumptions (e.g.- going concern- accrual basis)
- Standard-Setting Bodies and Their Roles
- FASB (Financial Accounting Standards Board)
- GASB (Governmental Accounting Standards Board)
- SEC (Securities and Exchange Commission)
- AICPA
- FASB Codification Structure
- Topics- subtopics- sections- and paragraphs
- Research using the FASB Codification
- US GAAP vs IFRS
- Similarities and key differences
- Principles vs rules-based standards
- Inventory- leases- revenue recognition- PPE- impairment- etc.
- Presentation of Financial Statements
- Income statement (multiple-step vs single-step)
- Statement of comprehensive income
- Balance sheet
- Statement of cash flows (direct vs indirect method)
- Statement of changes in equity
- Notes to Financial Statements
- Summary of significant accounting policies
- Subsequent events
- Related-party disclosures
- Contingencies
- Interim and Segment Reporting
- Reporting requirements for interim financial statements
- Operating segments and disclosure thresholds
- Major customers- products- geographic areas
- SEC Reporting
- 10-K- 10-Q- 8-K- S-1 forms
- Regulation S-X and S-K
- Inline XBRL requirements
- Accrual accounting
- Fair value hierarchy (Level 1- 2- 3)
- OCI (Other Comprehensive Income)
- EPS (Basic vs Diluted)
- Comprehensive income
- Component of an entity
- Materiality
- Consistency vs comparability
- Subsequent events (Type I vs Type II)
- Form 10-K/Q filings
Area II : (30–40%) II. Select Balance Sheet Accounts
- Cash & Cash Equivalents:
- Bank reconciliations
- Restricted cash- compensating balances
- Receivables:
- Allowance for Doubtful Accounts (Direct Write-off vs. Allowance Method)
- Factoring- Pledging- Discounting of receivables
- Impairment of receivables
- Inventory:
- Costing methods (FIFO- LIFO- Weighted Average)
- Lower of Cost or Market (LCM) / Net Realizable Value (NRV)
- Inventory valuation (Gross Profit Method- Retail Method)
- Purchase commitments and write-downs
- Property- Plant & Equipment (PP&E):
- Capitalization vs. Expensing
- Depreciation methods (Straight-line- Double Declining Balance- Units of Production)
- Asset retirement obligations (AROs)
- Impairment & disposal of long-lived assets (ASC 360)
- Intangible Assets:
- Recognition & amortization (Goodwill- Patents- Copyrights)
- Research & Development (R&D) costs
- Impairment testing (Goodwill under ASC 350)
- Investments:
- Debt vs. Equity securities (Trading- Available-for-Sale- Held-to-Maturity)
- Equity method vs. consolidation
- Fair value adjustments & impairments
- Leases (ASC 842):
- Lessee accounting (Finance vs. Operating leases)
- Lessor accounting (Sales-type- Direct financing- Operating leases)
- Lease modifications & terminations
- Liabilities:
- Current vs. Long-term liabilities
- Contingencies & provisions (ASC 450)
- Warranty obligations
- Debt Financing:
- Bonds payable (Premium/Discount amortization- Effective Interest Method)
- Convertible debt & debt extinguishment
- Troubled debt restructuring
- Equity:
- Common vs. Preferred stock
- Treasury stock (Cost method)
- Stock dividends & splits
- Retained earnings restrictions
- NRV (Net Realizable Value)
- Market (LCM valuation)
- Depreciable base
- Capital lease vs operating lease (pre-ASC 842)
- Lease liability
- Fair value option
- Amortized cost
- Impairment loss
- Carrying amount
- Recoverability test
- ADA (Allowance for Doubtful Accounts)
Area III : (25-35%) Select Transactions
- Revenue Recognition (ASC 606)
- Five-step model:
- Identify contract
- Identify performance obligations
- Determine transaction price
- Allocate transaction price
- Recognize revenue
- Contract modifications
- Principal vs agent
- Licensing- warranties
- Income Taxes (ASC 740)
- Current vs deferred tax
- Temporary vs permanent differences
- Deferred tax assets and liabilities
- Valuation allowance
- Uncertain tax positions
- Pensions and Postemployment Benefits (ASC 715)
- Defined benefit vs defined contribution plans
- PBO- ABO- FV of plan assets
- Net periodic pension cost components
- Funded status reporting
- Stockholders' Equity
- Common and preferred stock
- Stock dividends and stock splits
- Treasury stock (cost and par method)
- Retained earnings appropriations
- Share-Based Compensation (ASC 718)
- Stock options (vesting- grant date- expense recognition)
- Restricted stock
- Fair value estimation models (Black-Scholes)
- Earnings per Share (EPS)
- Basic and diluted EPS
- Complex capital structures
- Convertible securities- options- and warrants
- Statement of Cash Flows
- Operating- investing- financing activities
- Direct vs indirect methods
- Non-cash investing and financing activities
- Deferred tax asset/liability
- Temporary difference
- Stock compensation expense
- Treasury stock
- Dilutive securities
- Defined benefit obligation
- Pension expense components
- Operating cash flow
- Option intrinsic vs fair value
- Convertible debt/equity
- Vesting period